Private Equity Firms Buy A Majority Stake In Medline For More Than $30 Billion

A consortium of private equity firms bought a majority stake in medical supplier Medline Industries Inc, which according to sources familiar with the matter, is a deal valued at more than $30 billion.

What Happened: Private equity firms comprising of Blackstone Group Inc (NYSE: BX), Carlyle Group Inc (NASDAQ: CG), and Hellman & Friedman, have signed an agreement to buy a majority stake in medical supplier Medline Industries Inc, Blackstone said in a statement. 

Singapore’s GIC Pte will also invest as part of the partnership. 

The deal is worth $34 billion, including debt, and would include a $17 billion so-called equity check. 

Medline is one of the biggest private manufacturers and distributors of surgical equipment, gloves and laboratory devices used by hospitals worldwide. 

The company was founded in 1910 by A.L. Mills and now distributes medical supplies to more than 125 countries. According to Medline’s website, the company generated $17.5 billion in revenue in 2020.

“This investment from some of the world’s most experienced and successful private investment firms will enable us to accelerate that strategy while preserving the family-led culture that is core to our success,” Medline CEO Charlie Mills said in a release.

Why It Matters:  The investment is expected to be completed in late 2021, subject to regulatory approvals.

Goldman Sachs Group Inc. (NYSE: GS) and BDT & Co. advised Medline during the transaction. The Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), Barclays PLC (LON: BARC), Morgan Stanley (NYSE: MS), and Centerview Partners advised the private equity firms.

Medline is run by the billionaire Mills family based out of Northfield, Illinois. In addition to CEO Charlie Mills, the company includes his cousin Andy Mills, president, and Jim Abrams, COO and Charlie Mills' brother-in-law.

According to the statement, the Mills family will remain the largest single shareholder, adding that there will be no changes to Medline’s senior management team.

(Photo by Oleg Magni from Pexels.)